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BEML pays dividend of Rs 15.75 crore to the government

BEML Limited, which is under the radar of the government's disinvestment plan, has paid a dividend of Rs 15.75 crore to the government
New Delhi: The Bangalore-based Miniratna Defence PSU BEML Limited has paid a dividend of Rs 15.75 crore to the government on January 3, 2020, for the current Fiscal Year (FY2019-20). A dividend cheque of Rs 15.75 crore was handed over by BEML Limited's Chairman and Managing Director (CMD) DK Hota to the Union Defence Minister Rajnath Singh in New Delhi. On the occasion, Defence Production's Additional Secretary Barun Mitra and other senior officials from the government and the BEML were also present. In the previous Financial Years, the BEML had paid the dividend of Rs 18.00 crore for FY2017-18 and 18.00 crore for FY 2016-17.

The backdrop

BEML Limited, formerly known as Bharat Earth Movers Limited, was established in May 1964 as a PSU for the manufacture of Rail Coaches & Spare Parts and Mining Equipment at its Bangalore Complex. The company has partially disinvested and presently the government owns 54 percent of total equity and rest 46 percent is held by Public, Financial Institutions, Foreign Institutional Investors, Banks and BEML Employees. BEML plays a pivotal role in serving India’s core sectors like defence, rail, power, mining and infrastructure. The company started with a modest turnover of Rs 5 crore in1965 and the total turnover of the company is now more than Rs 3,500 crore. In a recent development, the government has initiated the process of strategic disinvestment of BEML Limited to the extent of 26 percent out of the government's shareholding of 54.03 percent with the transfer of management control to a strategic buyer. Once the government loses the controlling stake, BEML will also lose the tag of a Public Sector Company.